Impinj Inc (PI)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.68 | 0.78 | 0.77 | 0.73 | 0.75 | 0.80 | 0.85 | 0.92 | 0.88 | 0.88 | 0.00 | 0.00 | 0.00 | 0.26 | 0.27 | 0.25 | 0.24 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.77 | 0.89 | 0.89 | 0.88 | 0.91 | 0.95 | 0.99 | 1.04 | 1.02 | 1.04 | 0.00 | 0.00 | 0.00 | 0.33 | 0.33 | 0.31 | 0.29 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 3.29 | 8.26 | 8.09 | 7.64 | 10.54 | 17.97 | 135.78 | — | — | — | 0.00 | 0.00 | 0.00 | 0.50 | 0.49 | 0.45 | 0.40 |
| Financial leverage ratio | 3.26 | 3.50 | 3.81 | 4.82 | 10.53 | 10.45 | 10.42 | 14.00 | 22.43 | 159.04 | — | — | — | 2.36 | 2.38 | 2.48 | 1.90 | 1.83 | 1.82 | 1.70 |
The solvency ratios of Impinj Inc provide insights into the company's ability to meet its long-term obligations.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. Impinj's debt-to-assets ratio has fluctuated over the years but generally remains below 1, indicating that the company relies more on equity to finance its assets. The ratio increased towards the end of 2022 and into 2023, suggesting a higher debt level compared to assets.
2. Debt-to-capital ratio: This ratio indicates the percentage of the company's capital that is financed by debt. Similar to the debt-to-assets ratio, Impinj's debt-to-capital ratio shows an increasing trend after 2021, reaching levels above 1 in late 2021 and 2022. This implies a higher reliance on debt to fund the company's operations and investments during this period.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the extent to which debt is used to finance the company's operations compared to equity. Impinj had minimal debt in early 2021 as indicated by a ratio of 0.00, but the ratio spiked dramatically in late 2022, particularly in September and December. This sudden increase suggests a significant increase in debt relative to equity, which could potentially raise concerns about the company's financial risk.
4. Financial leverage ratio: The financial leverage ratio provides a broader view of the company's financial structure by comparing equity to total assets. Impinj's financial leverage ratio exhibits a similar pattern to the debt-to-equity ratio, showing a sharp increase in late 2022, indicating a substantial increase in financial leverage. This substantial rise in leverage may indicate a more risky financial position for the company.
In summary, Impinj Inc's solvency ratios indicate a shift towards higher debt levels and financial leverage in late 2022, which could raise concerns about the company's ability to meet its long-term obligations and sustain its financial stability. Management should carefully monitor and manage the company's debt levels to ensure a healthy balance between debt and equity financing.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.41 | 6.90 | 3.53 | -0.25 | -8.01 | -4.92 | -2.08 | -2.69 | -3.90 | -8.40 | -12.67 | -14.87 | -19.04 | -14.78 | -11.69 | -11.30 | -8.58 | -8.61 | -8.27 | -6.49 |
Impinj Inc's interest coverage ratio has shown a significant improvement over the past few years. The company had negative interest coverage ratios for most of the periods up to December 31, 2022, indicating that the company's operating income was insufficient to cover its interest expenses during those times.
However, starting from March 31, 2023, the interest coverage ratio began to improve and turned positive, indicating that the operating income was more than sufficient to cover the interest expenses. This improvement continued throughout the subsequent periods up to December 31, 2024, with the interest coverage ratio steadily increasing.
The positive trend in the interest coverage ratio is a positive sign, suggesting that Impinj Inc's ability to meet its interest obligations has strengthened over time. Investors and creditors may view this improvement favorably, as it indicates a reduced risk of default on interest payments.